Heat the oven to 350 °F. Set the oven rack in its usual baking position so the cookies bake evenly.

Whisk the almond flour, coconut flour, salt, xanthan gum, and baking powder in a medium bowl. Break up any visible clumps so the dry mixture blends smoothly into the dairy mixture.

Beat the softened butter and granulated monk fruit in a larger bowl with a hand mixer or stand mixer. Continue until the mixture looks creamy and evenly blended.

Add the softened cream cheese and beat until smooth. The mixture should look uniform, with no obvious cream cheese lumps.

Mix in the vanilla and egg. Stop when the egg disappears into the creamy mixture and the batter looks cohesive.

Add the flour mixture to the wet mixture and mix until a dough forms. It may begin as loose, crumbly clumps, then come together into a moldable dough.

Line a baking tray with a silicone baking mat or parchment paper and portion the dough with a 1” cookie scoop. Leave space between portions so they bake without touching.

Roll each portion between your hands to make smooth balls. A smooth surface helps the cookies bake more evenly.

Press each ball gently with your palm to form a slightly flattened disc. Keep the discs even because the dough will hold its shape rather than spreading widely.

Optionally add cinnamon sugar or a few sugar-free chocolate chips to the shaped dough. Keep toppings light so they stay attached as the cookies bake.

Bake for 10 minutes. Remove the tray when the bottom edges are lightly golden, even if the tops still look pale and soft.

Cool the cookies completely on a cooling rack. They will feel fragile while warm and become firmer as they reach room temperature.